In the present investigation, it is attempted to derive a yield function and associated flow rules of loose metal powders to predict plastic deformation and density change during compaction. The loose metal powders yield by shear stress as well as hydrostatic stress and the yield strength is much smaller in tension than compression. Therefore, a yield function for the powders is expressed as a shifted ellipse toward the negative direction in the hydrostatic stress axis in the space defined by the two stresses. Each of parameters A, B and .delta. used in the yield function is expressed as a function of relative density and it is determined by uniaxial strain and hydrostatic compressions using Cu powder. Flow rules obtained by imposing the normality rule to the yield function are applied to the analyses of unidirectional, bidirectional and hydrostatic compressions, resulting in an excellent agreement with experiments. The yield function is further examined by checking volume changes in plane stain, uniaxial strain and shear deformations.